The Red Meat Producers’ Organisation (RPO) has welcomed the progress made in gaining access to the Egyptian market, saying every additional export outlet is important to the economic sustainability of South Africa’s red meat value chain.
Minister of Agriculture Willie Aucamp announced at the Agri NW Congress on 3 September that South Africa and Egypt had concluded negotiations on the veterinary health certificate (VHC) for red meat exports.
He described the development as an important breakthrough for an industry under pressure from the disruption caused by foot-and-mouth disease (FMD).
“This is a major milestone for South Africa’s agriculture sector, which has been facing one of the biggest FMD outbreaks in decades.
“I sat with my team on Monday and emphasised that we have to get this right, as our red meat farmers need this, and I am pleased that the team made it happen.”
Final signatures still required
The VHC will set out the animal health and food safety conditions South African exporters must meet when supplying red meat to Egypt. Shipments can proceed only once the agreement has received its final signatures.
A media statement issued by the Department of Agriculture (the department) on 3 September did not specify when the process would be completed.
In a subsequent conversation with Farmer’s Weekly, Aucamp said it was difficult to commit to a timeline while the agreement awaited signing.
“I can assure the industry that the department is doing its utmost to finalise the agreement with Egypt as soon as possible. We realise the urgency,” he said.
Aucamp attributed the progress to constructive engagement between the South African negotiating team and the Egyptian veterinary authorities. He said government should support and enable the agriculture sector instead of becoming an obstacle to growth.
“Government remains committed to strengthening international trade relations and expanding market access opportunities for South Africa’s red meat industry,” he told the congress.
Exports needed to support prices
Dr Frikkie Maré, CEO of the RPO, said the organisation welcomed every export market that opened to South African red meat.
“Weaner calf prices are currently very strong compared with a year ago, but carcass prices are lower than they were this time last year. The situation, as it stands, is not sustainable,” he told Farmer’s Weekly.
Maré said stronger exports are needed to help lift carcass prices. Without this support, weaner calf prices will eventually need to fall fairly sharply for feedlots to remain sustainable.
He added that South Africa’s red meat exports had declined sharply following the FMD outbreak and the ensuing closure of markets such as Egypt and China. However, the decline was not caused by market closures alone: some South African feedlots and abattoirs had also been unable to export because of FMD regulations.
“Negotiations with new markets are therefore very important, but so are negotiations on new VHCs with existing markets that will allow us to export meat from vaccinated animals,” Maré said.
Each agreement reached would help strengthen the economic sustainability of the red meat market by supporting carcass prices, weaner calf prices, and producers who send their animals directly for slaughter, he added.
Additional outlet for red meat
If finalised, the agreement will give South African producers and processors another export destination and help diversify the country’s red meat markets.
Aucamp said the development also supported government’s priorities of inclusive economic growth and job creation, while strengthening the agriculture sector’s resilience and competitiveness.
“Every international market South Africa opens creates an opportunity for money to flow back into the rural economy and build commerce along our value chains,” he added.
